Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Financial Mathematics

Question:

"Mr. Kumar purchased a 4 BHK flat for ₹ 2.5 crores and rented it out".

This is an example of :

Options:

Perpetuity

Sinking Fund

Equated monthly installment

Effective rate of return

Correct Answer:

Perpetuity

Explanation:

The correct answer is Option (1) → Perpetuity

Perpetuity refers to an investment or financial agreement that provides an indefinite series of cash flows (such as rent) over time.